Marc Nemenoff
PRICE Futures Group
Financials: Dec. Bonds are currently unchanged at 139’29, 10 Yr. Notes 1.5 lower at 118’16.5 and 5 Yr. Notes 1 lower at 112’10.5. Yields on Treasuries have slowly risen over the last week in part due to favorable economic numbers for Housing and Consumer Sentiment along with anticipation of a rate hike next week. The 10 Yr. yield is now at 3.07% and the 30 Yr. Bond at 3.22%. Curiously the spread between the 10 Yr. and 30 Yr. remains at 15 basis points. I feel this will widen to 25 pts. over the next six months. I will be on the sidelines until next Wednesday, after the FOMC meeting.
Grains: Dec. Corn is currently fractionally higher at 346’0, Nov. Beans 1’0 lower at 829’2 and Dec. Wheat 2’6 lower at 519’6. We remain long Dec. Corn from below the 352’0 level. I will be interested in the long side of Beans should they break another 40-50 cents to the 785’0 area.
Cattle: Live and Feeder Cattle continued to rally to new near term highs. As mentioned last week I wanted to be a seller in Dec. LC above 117.00. The LCZ18 traded just above 118.45 giving us plenty of opportunity to initiate a short position. I am currently using a 119.50 protective buy stop and will lower the stop to 118.75 if the market trades below 116.775.
Silver: Dec. Silver is currently 6 cents higher at 14.34. I remain long and will use a protective sell to at 14.03.
S&P's: Dec. S&P’s are currently 10.00 higher at 2924.75. Treat as a trading affair between 2892.00 and 2929.00
Currencies: As of this writing the Dec. Euro is currently 99 higher at 1.18540, the Yen 12 higher at 0.89775, the Pound 149 higher at 1.3347 and the Dollar Index 63.4 lower at 93.485. If you remain long the Pound (last weeks’ objective was 1.3300) either take profits or raise your stop to 1.3170.
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